Q. Which of the following institution is oldest of World Bank group?

[A] International Bank for Reconstruction and Development (IBRD)

[B] International Development Agency (IDA)

[C] International Finance Corporation (IFC)

[D] Multilateral Investment Guarantee Agency (MIGA)

Answer: A

Explanation: The International Bank for Reconstruction and Development is the oldest of the WB institutions which started functioning (1945) in the area of reconstruction of the war-ravaged regions (World War II) and later for the development of the middle-income and credit-worthy poorer economies of the world.

  • Human development was the main focus of the developmental lending with a very low interest rate (1.55 per cent per annum)—the areas of focus being agriculture, irrigation, urban development, healthcare, family welfare, dairy development, etc. It commenced lending for India in 1949.
  • After the process of reforms started in the World Bank in 2010, India was allotted additional shares in IBRD (now holds 56,739 shares accounting to US $ 6,844.7 million).
  • With this India emerged as the 7th largest shareholder (up from the 11th position) in IBRD with voting power of 2.91 per cent (up from 2.77 per cent).

Source: TMH Ramesh Singh